VTR - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter 2019 Ventas Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. of President Vice Sanabrial, Investor Relations. Juan you. Thank go Please ahead.

Juan Sanabria

XXXX. to Norma. announcement call conference morning September today welcome Good and the XX, ended to quarter its for Ventas results Thanks, regarding the review the company's

predictions As we start, be stockholders that this cautions other law. me the from express considered during uncertainties forward-looking to forward-looking made call statements the others and to actual subject meaning that risks, federal projections be And of that whether statements conference certain the our let expressed and materially these are may statements and or many within results contingencies. implied. The and expectations differ recognize should company may company's securities

forward-looking statements the expectations. disclaimed and any reflecting to expressly any obligation any updates publicly changes Ventas to release or revisions

factors XX, the XX-K company's on and Report and information company's company's in December that Form other included filings. Additional affect ended operations XXXX the year may is results Annual SEC the for the about

between measure Please measure quantitative non-GAAP its company’s website well directly Relations at comparable of available the section reference call conference www.ventasreit.com. Investor supplemental note and the in reconciliations on as schedule GAAP this our are most the each disclosure financial

Cafaro, I call to will Chairman company. over now the and Debra turn of A. CEO the

Debra Cafaro

Innovation in report XXXX investment including is in growth, into governance environmental on in Thank valued Groupe other joined strong our my Welcome our today's partnership, and shareholders morning as our business accelerating by call released to our Ventas Le highlighted results you, social our Juan my primarily today's highlights that earnings recent to and colleagues participants. of future call I'm and sustainability by our closing and and we the XXXX enterprise other good leadership all of quarter call. corporate third today. on the Research Ventas’ quarter & the discuss our valued Maurice

very see us operating implications and also than of its our address housing performance for expected in in in at the that record. a that the they've years, Senior leading to highest very Senior of lower quarter growing is communities level Living positive the where It nine been senior portfolio living indicators and on quarter I'll heartening is in especially starts Living lowest the its context, New forward third business. demand construction this for assisted

quarter of Starting per normalized quarter very share. our with report strong third results, a FFO to $X.XX I'm pleased

expected office range $X.XX Our performance by was investments, guidance share, $X.XX full-year and lease per and to midpoint excellent driven We've refined normalized is we business. to markets our share. $X.XX maintaining consistent growth guidance capital the first share the year. per at accretive activity per our quarter the of also this in triple-net FFO This range in our normalized of half FFO also outcome with initiated for upper XXXX

our portfolio nearly Ventas lease by grew the of capital significantly is portfolio and net in from Canadian portfolios our triple benefiting activity. the quarter, diversified cash markets effective investment represented XX% our our Indeed X%. housing NOI office by senior and same-store in

experienced we precipitous US SHOP represents at took in of which However, XX% enterprise, operating end our quarter dynamic a occupancy and in the our September. business, down conditions of the leg

be enter is end deferred range, seasonal XXXX. into XXXX full reduction Because and leading lift XXXX address after softness during original continuing the growth fourth XXXX strong we our occupancy will SHOP continued the our typical detail, lower until the our to our year our are Thus, base, we've trends expect enterprise a experience concluded off XXXX rate These also more mostly guidance. to a that quarter not in will fall Bob shop performance quarter. and did below in as we portfolio guidance in will that because

and of out focused our very this today. While in the by are solid XXXX is year deferral outlined results resolute this on enterprise expectations, closing we've team we disappointed growth delivering the

Additionally, to us and to and decisions adjustments that capture improve position that the in performance will make remains necessary ahead housing. we senior intend powerful upside

we time, on focus delivering good productive, diversified be invest in continue future, our the the stay business have partners, will built. to At our value from shareholders same we and strong, for

the We our on XXXX expect rate be increases. our impact to with and and our of of in the thereof guidance January and year will review provide other Among consistent you the predicated the budget, quarter housing historic guidance with operator components first practice. senior X how ends things,

and addresses ESG senior Bob activities our attractive greater Before in and housing like accretive achievement. investment highlight to I'd detail,

investments billion its the our with price the new Le new development billion. XX were on Groupe quality with of Montreal-based partnership at year-to-date, $X.X we've delighted housing in and we made quarter, portfolio third Within high of consolidated senior communities apartment-like in-progress valued five $X.X to close Maurice

the brand gone integration we performance our well partners of your The line have exceedingly and as you well-regarded expectations. your maintaining and border, choosing Ventas you LGM thank company partner. success positioning continued new LGM for we your transaction and for growth. north is on To our And and congratulate in with in sustainable

partner, million XX%, uCity acquired to Drexel with currently city the the quarter $X.X development. Drexel our net a square used the an our are of Nursing footage where We've expansion our square in this and School assets for in research development Wexford. to and our increased burgeoning continue One progress as our The of uCity pipeline, Professions expected new feet, great with and billion yield Among University accomplishments occupied. business of our XX-year where market of developable our also footprint the XX% build with assets Philadelphia innovation execution in of of university-based and its best-in-class exciting Health X we key made on lease nearly development submarket

projects improve some, to team and our pleased Ventas over In in close to continue commence The R&I invest next our quality in the are and is pipeline future. investment volume, quarters. and several portfolio as we the year-to-date also more we several with aiming our

social profile. environmental significantly and governance elevated Finally, we've our

around repeatedly prestigious several are efforts of sustainability pillars our performance, organizations. organized leadership that released that Today, aspirations. planet, ESG achievements three we we by corporate key and pleased and are recognized report people, has our catalogs ESG longstanding XXXX our ESG Our and been

our We improvements will in also our areas ESG success. support that focused business continue

decades, been ever has integrity, the closing, business and periodic focus experienced past incredible is rally and with to In outperformance and skill, Ventas no two Yet, always positivity, success over stronger punctuated back teamwork, by we've setbacks. today exception. than able

the to turn to pleased Probst. I'm Bob that over our CFO, call With

Bob Probst

decreased segment year, that a going effect by NOI. dynamic in result and into led a new fell was of our by our represents versus disappointing XX% straight third market. our expectations. results cumulative of Thanks, start SHOP X% our short Debbie. prior I'm weakness relative from result the for to cash NOI SHOP openings QX which of diving revenue quarter This same-store

I'd highlight three primary versus drivers our expectations.

occupancy sequentially versus to we typical widened point though did XX third the basis quarter average basis seasonal second XX occupancy average XX.X%, gap grew see First, QX Therefore, prior an year points by to not expected lift. the occupancy occupancy from the and gap.

in year-over-year basis approximately In the XXX third occupancy than sharply quarter, year. lower gap end with September period points September prior occupancy widened

geographies, significant price year. most competition tighten and widened of in they would pursuit in select new by instead Second, in our spreads residents was our relative releasing supply to markets. portfolio expectation QX notably prior of Negative driven in secondary that new

reduced second in to quarter growth from As a in basis the points XX quarter sequentially year-over-year. points REVPOR XX the result, third basis

performance action ESL improve SHOP ESL, discrete by third, QX And in Corrective would our exacerbated note will challenges, new excluding by NOI progress. same-store experienced pricing supply. XXX plans I points. over basis are that

dispositions out point start evaluating of year our for set quarter, QX performance, lower the close operators actions We're the and or light of capital including at In revenue as and and base occupancy occupancy XXXX. call aggressive entering in we for SHOP improve a investments. level plans the to trends pursuit Ventas also actions pricing the fourth selective

to a grew in note positive quarter. the a third Turning and on modest X.X% operating expenses expenses

and Our wage adroitly mitigate staffing indirect by efficiencies costs. operators in continue driving to managing pressures

basis our our of This of the performance senior the occupancy LGM. grew robust which also portfolio, of underscores NOI which posts NOI Canadian SHOP health a X.X%. housing increased to XX% nearly XX.X% represents I'd highlight portfolio at and now closing XX the market, points Canadian

third results, in competitive full QX, trend and to the a and year a minus NOI attractive market, entering challenging quarter demand fourth minus positive SHOP QX do fourth revising record X% now housing a demographics. we range senior XXXX quarter. our We dynamic lower guidance range to the same in continued occupancy starts, see are of levels given US store and trends, cash from new Given tech X%. in implies quarter The given levels in upside guidance

square million is approaching NOI to over on our move XX feet. represents exciting our Let's and XX% segment, which currently of office

the segment Our with full store overall guidance. X.X% that same cash third in same year And More growth our store we're office improve X.X%, year-to-date growth of minute. office on of attractive quarter. office pleased NOI a delivered to in

increased business lease cash Wake R&I a store per increased feet, NOI increasing XX.X%. X by third office assets square which points Forest exceeds X.X%. revenue Our basis occupied square the way strong while quarter, same our led foot million on XXX now in the stellar up for Occupancy at

place lease pipeline portfolio associated XX termination XXXX a now is of Cortex Cortex slightly store operation, in than demand. bringing development R&I months in XXX% only with Duncan incremental penny a Our to $X.X a occupancy with fee QX more also and of occupancy of innovation Washington non-same in community after of five in benefited the by Louis at St. million buildings overall NOI XX% were its of FFO. Ventas'

investments. square-foot XX a X.X% expenses highest XX-month sustainability same-store million improved third MOB XX record. MOB just satisfaction in part to in from the points tenant year-over-year We've basis medical arising in the on our scores MOB meaningful increased office savings benefiting company's a our business. while by quarter. tenant NOI trailing QX, utility in our seen to retention from Turning Operating increased improvement steady ratio by

points growing the drive Pete cash flows. proof These are office results that various Ventas sustainable practice leadership is operational initiatives implementing will under of Bulgarelli's successfully best

XXXX from our NOI year-to-date by same-store to X% heels strength of R&I. X.X% better-than-expected now the to full are pleased driven in office which On guidance range strong results, principally we raise year

triple latest flow quarter cash prior for lease across of stabilized escalators the portfolio. the health On triple driven the diversified to for cash by housing, firm our and portfolio our EBITDAR with XXXX, triple increased and net stable annual in Coverage rent for net X.X by second at XX-month Trailing where held assets information was system times. also overall same-store NOI post-acute third coverage net X.X% quarter. our seniors available quarter

for overall. performance I would and highlight by the the Ventas continued the Ardent owned for strong enterprise assets

store non-same on select senior addressing in proactively triple housing still from for results. NOI impact This with are net $XX net leases million credit track impact We operators. the approximately lower appears

X.X% pool, As of result net we're full range our full from triple NOI raising guidance now of to year a year X.X%. year-to-date cash growth same-store the from X% to net same-store triple XXXX

share cash to fee in Enterprise year-over-year, was related of $X.XX. performance back the The results. third Normalized per adjusted FFO Kindred-Go $X.XX for share per in a to versus the Private third solid Turning XXXX flat quarter the XXXX transaction. was FFO received the quarter

our active markets term debt pricing. to capital third in $XXX currency notes in rate also years the senior bank the To maturity average debt million seven were XXXX. manage X% closed of million nearly retire to the notes of We the of to issuance XXXX used we million attractive of were close extended due loan managed X.XX% interest risk via CAD transaction, from $XXX unsecured XXX the quarter. LGM and at risk which We

Our is ratio to X.X quarter-end. at EBITDA net adjusted debt times

equity the from fund QX second second sequentially increased increased leverage in in leverage as sequentially QX. from LGM expected, raised quarter we the deal closed which to As the quarter

$X.XX range And midpoint quarter from per in of line I'll to range year, now finish XXXX with of at The share. per our At range the initial in to from full-year prepared our remarks stage this normalized share for higher late second in is February $X.XX. the outlook provided $X.XX of guidance with narrowing guidance $X.XX we're the the our guidance. FFO $X.XX guidance call. end the to

our also now to from on XXXX, taking in points, our We’ve office into and growth to X% triple-net SHOP. for reduction portfolio basis cash guidance range narrowed portfolios overall and an NOI account same-store increased up the range XX guidance

resolute capital performance same includes improve in to quarter. are Ventas Other our the impacts largely announced the and guidance the growth last investments FFO date. the actions as close assumptions taking all of deliver is Guidance team of that of stakeholders. whole To markets activity and our for value underpinning benefit in will

open to With operator the line that, I'll for questions. to hand the it

Operator

comes question from Instructions] [Operator Yulico you. Nick of first Thank Our Scotiabank.

Your line is open.

Nick Yulico

XXXX. question commentary, your Thanks. growth it about, I to thinking the to occur guess after you’re you FFO that, release growth not we year? the press morning. is will the enterprise you're that return now Good expecting first into had Debbie, read Are next

Debra Cafaro

yes. Directionally,

Nick Yulico

Okay.

Debra Cafaro

We defer think that this will XXXX. past growth

Nick Yulico

I pretty positive. year then, we where think had you're Day about And you where as an Okay. guess, this Investor

now on a how you assets? You the Can just for your had operators housing. remind tough from you often getting seniors quarter housing are your of senior updates performance us

it specifically, be in And is that assets. What can what terms facing right you’re cited potential there the issue? taking operator that senior you of besides about helpful. an better Is to issue sales of That housing? you're other address do then Is steps now would something business? that you predicting

Bob Probst

it's Sure, Nick, Bob.

would I me describe very with with cadence conversations as regular. which operator, the Let start of the

don’t operators. rapidly – market I contact – absolutely changed surprised the quarter. third constant operators the described the in nature is recall boots the asset as I a on the the What fact teams Our change. of is are our were And even the pretty management ground with in the by

the September, highlighted which particularly, in remarks. trend And in prepared the occupancy we

changes then as – really dislocation for circumstances outlook into outlook the that it's pretty entry And changed and we the year review the QX, that rapidly. so the those

with all them, to So question. the it, that. focused very we we asset-by-asset I'd revenue. actively doing on Certainly of operators second call recovery operational the of at what much level, an are part the on engaged And are about plans, engage continue them in,

be in select have, there markets. different clearly, opportunities and look including as options clearly, profile submarkets. underperformers forward level, growth. we ways dispositions compete selective potential continue to And of we are and the we to portfolio continue Capital competitive that as drive about various a think investments, see invest in At to behind

same of I the would regular. playbook is the very, frequency dialogue it's and expect you So as very see

Nick Yulico

spreads a about, and quarter follow was that you tightening the in which guess just instead and forecasting you tightening, surprise seeing What that of there. negative are tightening. just that widened were mean gave forecast talked guess Bob, a something confidence itself I leasing I how one I quarter? in up it you were you you to operators did Is something the end negative you your up telling seeing? in

Bob Probst

Great.

last last of So quarter, did last year, then year the guidance in back our to if widen discounting second you aggressive basis in a in sequentially earlier the last and we third points in consequence. half and half of saw releasing saw we the second up And as spreads see the year price the occupancy last reaffirms half XXXX, quarter we XX grow year. nearly the

was that the backdrop. So

surgically have context, this that say, the discounting and of of believe I'd That our half, therefore, to not narrowed prior all operators improved ability and a predicate have environment guidance. In more the in an consistently price, releasing significant was spread. the second

rate, over has the driven that it's and online coming be that happened spreads openings narrower. been discounting. really, to of in a as of growth has a I course in more you And competitive, more is in the than to as our indeed it the REVPOR see What softening rather cumulative have in opposed sequentially, therefore, effect widespread call wider year-over-year time price releasing the

So, market fundamentally, and in third that versus in the expectation. a our the change was quarter, both

Operator

you. Thank

Joseph with Our next Nick from Citi. question comes

Your line is open.

Michael Bilerman

here Michael It's Bilerman Nick. morning. with Good Hey.

of are. together probably to almost of where things XQ that run some your the backing is for rest the in away XQ which the doing versus ahead growth same-store how are are is weaker sort of two-thirds line for fine as piecing results your of SHOP of that the actually the So, businesses, company, appears expectations year, that playing part and next and NOI expectation much rate into from the

be how is of XXXX So, down, the that X% year? the to SHOP negative a is it shift much this to call again expectation rate versus in off due run of this going

Bob Probst

understand not I of… it, I sure Yeah. question. I'm your Michael, mean thanks totally in terms but for –

Michael Bilerman

Street Well, $X.XX year, get up $X.XX, expecting right thought is just you was you're FFO. a So, this the in somewhere were the realm going Street you going of for do I probably now of guess, where $X.XX, as standpoint to earnings I right? the which mean, to from growth

not Now, slower two FFO parts you've it, going had right? of you're year very into and, It's there's to you're saying weak growth SHOP well, have because the getting results.

SHOP. XXXX know So, accounts the giving of run And I for right. not to have is But growth, how to you defer rate have I That lower. how don't don't in $X.XX. that's changed for, I making the addition, know know, cadence you're XXXX know your you're earnings I don't if I or that in And guidance. $X.XX know statement going perspectives don't much much

year number I'm that how is the the below be to next just what you you're much in quarter. that And XXXX. you year much the how at fourth trying and quarter for to a of how third weakness have arguably And So, what together XXX. going half looking of in piece it change this you're experienced of to is is the second the forecasting in

Debra Cafaro

basically year. letters, that including is do underpinnings and we want the of I when address XXXX we want normally guidance and to and budget, and in first we the mean we components the to the so And do what that when end we of XXXX key quarter. some see have on, Okay. the do our rate where the all

and the So, XXXX. and that when ready give be We guidance just for reliable in first I parts quarter. conversation. is defer the to want the guidance would you the that'll And

Michael Bilerman

this can we way. address it Maybe

That year and you've guidance prior for quarters. $X.XX So, right, $X.XX, is the $X.XX, two what down have you $X.XX an you provided fourth to $X.XX full implied on based that of year-to-date. in the have to $X.XX experienced from you the quarter what

is gotten terms the talking X%, big $X.XX of that investments, you're range would all one made creative you the benefit for closed imagined, range, a you've investment right, recently. X% about of Still have and pretty have quarter. a fourth the in would investments accretive And

about based you couple which start down be getting that down to the that can what we so guidance tell would store pennies X.X% of we reported from $X.XX from maybe effectively can $X.XX can of maybe on So, delta walk $X.XX about shot about talking your XQ part? through of FFO X% Bob year-over-year same a only implying down and sequentially is numbers

Bob Probst

Yeah. I'll now where I point your our point embedded in and is are we real. of determines the therefore, finish The quarter fourth point. first start year XXXX also address implication in start is bit outlook XXXX you that a question. finishing this lower of the mean for, we've where fundamentally as seeing we're and in the lowered

a input fundamental So XXXX. that’s obviously into

depending Let's math if second and you $X.XX midpoint and fourth the driving and is in question with property. $X.XX number notably what's the use is for most part down up run X third one to or SHOP sequentially in easy quarter round the rounding the a which becomes of $X.XX that and

is of the the fee, that largest had the highlighted a roughly term third a things, two therefore, you term in R&I quarter, between bridge fee also gap. property in and driver. And that we those We $X.XX. And

revenue the again quarter. the predicated sequential is So description. fourth principally range in midpoint that’s SHOP the really the And out turn on

Michael Bilerman

And you a benefit think it’s of…

Bob Probst

Hopefully more answer than helpful you. my that’s to

Michael Bilerman

colony, in equity get of amount that lease in you should the of Yeah. you you the June of you like loan was help refinancing, – raised down that a you that go creative, bought but once that SHOP should a debt fee, sequentially. all all assets, And term significant I on understand did

Bob Probst

mean, That Maurice was XXXX. Well, Groupe Le be Colin, to so the in it is was expected I And in yeah. breakeven third.

Michael Bilerman

Right.

Bob Probst

reflected. So, you're are I – think those

principal to fourth the And are represent the third so, of Bob, – simplification drivers.

Operator

you. Thank you. Thank

of next Morgan comes Our Vikram question from Stanley. Malhotra

is open. line Your

Vikram Malhotra

for two Thanks have the taking questions. I questions.

FFO So be still this Colin, year. not year. on just Maurice next you should going a positive understanding, back benefiting, first positive it a year, get to growth. a I if next not positive the question should be I'm but you're is

NOI Your positive year. all office and in next be MOB should

to now volatile quarter and So, If like. forecasting itself you're what not it into effectively, things to to XXXX right so you're read, near-term the third I'm get SHOP tough I'm know into not are it's XXXX sure come growth. sure looks projecting a how in how just

year? like, So, embedded walk of – for what's if through you in the could what's in no growth FFO, that in just statement, that us SHOP next

Bob Probst

have to delighted going that, really components I'd Well, first are give the that way XXXX a all in to with quarter. do when the our historically in as done guidance we and disciplined be we do we

done in first And so quarter. the

so And have that historically asking to we that gone be I'm we but process us, you a disciplined ends. know how with through is see after patient year the I

be and We want reliable. the ready guidance to

XXXX you're us all the so parts looking to it we And guidance for. give would encourage with first talk when I about in that quarter the

Vikram Malhotra

enough. no But obviously because and to going Fair for Okay. just people question. are growth asset said, you

fair So enough.

Bob Probst

Yes.

Vikram Malhotra

We'll details. wait the for

shop, with that The articulating you're the second bear if and shop is the changes -- parts question there really you just can the around senior two me. are One housing in side. on

more that real-time could be were need for there's things as a obvious probably data XQ. they volatile in so maybe faster data because or It's

like manner like So like a can the more do term data longer or get selling real-time you side? you in CapEx, shop what assets apart putting are contemplating etcetera, and to in from things in

you've the look the address But restructurings. as and is on Triple-Net at in EBITDAR, could then side, potential in-place you if million baked EBITDAR if I'm And assuming of you $XX comfortable I lease additional but you get years well that on not should will several your below how be know XXXX? XXXX required leases, we and have X. restructurings in of some

Bob Probst

the first. take I'll Yeah.

reminder, our in the obviously, operators. data reliant are the business we shop from So on

some be real-time, good. say would that of speak between by is is I you As there that definition definition therefore and [ph] going the clock is by through receipt timing speed their our coming to to operators pretty

such indicators see are call as can there occupancy weekly. said, is which more That one which

also OpEx you it. get on play you the and like your quite a really really the things strong out On can need beat quarter see dynamic, other REVPOR are both before hand, but whole intra to quarter

we fully as see endeavor to be So the cases the and one NOI the industry, data want to continually to second? need some through on. better I But continues that in challenging such really get you agree it quarter. a you in to Debbie, take would that OpEx,

Debra Cafaro

triple-net for given for expectations track approximately Yes, materially on in we've with We're that. the portfolio, our terms net million a of $XX XXXX impact.

looking terms all Housing part a we again that XXXX you of significant and that's have provide when Senior a guidance forward, want of the of In to guidance our of our provide triple-net tenants. we we to amount

likes significant comfortable a many is of The the we portion feel the operators to other which coverage, largest rent. with Housing that's obligations. in forward net ability who of the one which large Senior go very our triple pay other where obviously has a And and rent credit have

Operator

Thank our question Richard from comes next of SMBC. Anderson you. And

line Your is open.

Richard Anderson

morning. good Thanks

Debra Cafaro

Hi, Rich.

Richard Anderson

any year you’re know bit I till that would outlook I just to being just the typically suggestion, I give little thought guidance, you guess, in question. but of uniqueness just an the not but of because wait the out the – that these process, know provide a of So a into quarter Hi. would to later, offer early and first end situation? pre say if of than maybe a curiosity, I typical doing? for as sooner wonder times, How you aren't I XXXX

forward is five do or Investor we the how do as that X% question outlook for stand really years, much disrupted still? we Day? range by a My you X% Do your to going assume five-year different from the is that

Debra Cafaro

right our let Yeah. the improve in real focus here follow on. is XXXX also Bob the steps in senior position and basically, closing that now, But housing. for I'll here performance us way Thanks, upside to we've outlined taking out today, Rich.

XXXX we to want when be And and and deserve will that extent you – get the it's which that to have there into are it to it's inputs many want given you, to go that. a Obviously, we good and reliable. ready

obviously, our to changed, circumstances, to so, that the XXXX five-year for implications due changing the And extent that have would outlook. has outlook

Richard Anderson

Okay.

Debra Cafaro

feel a can good let's XXXX getting with that But start about. you good you

Richard Anderson

I add to something? going it. you know. are I didn’t Bob missed Okay.

Bob Probst

No. It’s been entered…

Richard Anderson

holistic hasn't Okay. And second you'd as And why. Bob the has curious saying like of have a a you're the is but perhaps would of or the yourself changed that The this competition changed conversation. quarter. to say the behaviors last and it footprint dramatically guess perhaps sort much I the of is and changed said market of national you high, this more from condition supply feel then quarter. the do to your third in third been geographical you I'm really of

Bob Probst

you supply say. coming. to Well, not Yeah. rightly news was That’s knew We us.

I bigger impact. market we've impact to operators that then selling. think and seems compete it's on years, a Made particularly price. taken the of what others last been seeing how the our tougher which have the over on cumulative And within particularly

some industry is sequential they at growth. we there clearly data It have see, you tougher become only quarter. the data It was thematically seems in occupancy the when look the NIC which that is again

than fact that. and and occupancy as both be flattish better to QX. NIC or pricing measured look But was challenged. in by We QX Ours continued

did But So, without see how certainly overall to need say really a in better we that compete than our to it's to in we portfolio markets change. the that, to and data market. hard we industry change compete, for the which in needs

Richard Anderson

very enough. much. Thanks Okay. Fair

Debra Cafaro

Rich. you, Thank

Operator

Thank you. of [Operator Our next Capital Carroll Michael comes Instructions] question from RBC Markets.

Your open. line is

Michael Carroll

want was you Yeah. price quarter to impact were there on lost Ventas Was those occupancy question and that competitors. not the the into more just delivered Thanks. supply relative your more of – that’s Bob, related kind aggressive supply. Rich I more had last just was to and of or competitors issue dive the to that this

Bob Probst

lease the XX over anymore it's know new rule that flash if simply Well, we've thumb couple to always about bang takes quarter don't to Yeah. significant that's openings it's been important cumulative though time to has I for so to those not important, know openings the because talked a the last immediate. the And in historically, that It XX years. amount of of of months. applies up.

an in So, by It’s pro-rata folks the submarket. for – the to existing a openings the of quarter would the elevation then drop. operators Then It's in cumulative see impact you point those – come itself. market as that. opposed whole on kind The I how in compete, definition, do basis. I will submarket to occupancy would how some not within compete new

And we I would say in certain did share. geographies, lose

perhaps of to it's I asset-by-asset do markets, think impact the compete the – And to pricing well say where is releasing NOI. hence but markets we to REVPOR notably. within seeing That price and I also, if to that saw – on in were greatest where point these the first. came more are to secondary we’re we again, sensitive fair the price where greatest view and how as most deliveries markets, back and competition

hopefully that answers your question. So,

Michael Carroll

and stuff also Yeah. And and I guess, that in that seemed remark changes you made of that gain the think changes? is company the you you also, specific that then rate about in highlighted the I talking ones changes think guess Q&A referred the always has occupancy, the the that one I Are I I I to on her properties Debbie more I guess what cutting what, Ventas think in think pursuing more does done meaningful the to like the pursuing? investing pruning. planning

Bob Probst

mention. level, that definitely pricing an them take in I'll is resident effort and by can quarter at plans distinguished overall you Mike, win and I'll incorporates portfolio to that it strategy, call certainly more the actions rarely the we call which that the the Yeah, so aggressive fourth operational in as what

to the the So in of critical operating pricing level, the trajectory. level, compete changes at at us for is asset

Michael Carroll

concessions. surprised were that And started Okay. operators then offering you more

has concessions in I versus quarters. that obviously think Ventas prior have quarter changed something mentioned this and the operators said believe I market not disciplined been that those REITs other as fairly that offering and

Bob Probst

quarter quite widening the believe of this in quite year, seeing, Yes, that assumption. Again for guidance that widespread discounting, of one by our different our so in I that’s market a targeted last is definition by second the the of operators the be what predicates others of us why and three was half the that, would and back than more pricing, the in year a different. we're last us half third competitive and expectation and not in more opposite, were

Debra Cafaro

and we with and sequentially as a result occupancy seasonal in did that not even than right, third typically. grew we would Right, the power the neck quarter, we build lift though more

see as a result.

Bob Probst

we up get Right. why year-over-year. may Hence

Operator

And Jordan our comes question from Markets. you. KeyBanc of Capital Thank Sadler next

Your line is open.

Jordan Sadler

dead there, switch – moved triple change you? beat like up the full at midpoint. are to portfolio same-store stable that's can to over pretty XXX predictable think Can going the horse. points feel we driving NOI the a the growth pretty by of significantly there? What about business. that not you sort How net – I the year I a for I'm guidance basis

Bob Probst

still we're kicking. alive and So

So dead you're a not beating horse.

the net year we've the And discrete that that therefore about all NOI terms the beginning $XX a would the on in non-same of beginning $XX as net, triple store and of the the pool. at I impact – net had said simplifying assets I we talked about say around when set that made in FFO, and triple some talked of and we In of is of we just of the in outside of assumption year remarks the the million. million Bob's at the that think net

Jordan Sadler

Okay.

$XX that million that I was it's in previously and get out? Did So that's now right?

Debra Cafaro

we we've there quarter. that But being if assumption noted category. it out transitions, Remember, we’ve to simplifying a then within. were another And that's moves it about called or dispositions talked this what

Jordan Sadler

Okay.

the then $XX much the annualized $X Last million in as… is total crystallized adjustments at I quarter, How what's this that's the of out. is of million point? what said million, Bob. you'd think – $XX impact So And

Bob Probst

Yeah.

During million yeah. XXXX fourth $X quarter simple, is say, that million the is the I'd it and impact. approximately – To impact $XX keep

Jordan Sadler

think the… I about if But

Bob Probst

Penalized…

Jordan Sadler

example, $XX adjustments …annualized the for million. the XXXX, million to will impact $XX be adjustment annualized adjustment, the $XX from the so impact million of incremental

incremental an year. the million $XX So next

Bob Probst

you how that sure not I'm got number.

Jordan Sadler

Well, million the annualized $XX adjust -- is number? annualized an

Bob Probst

No.

Jordan Sadler

If the adjustments…

Debra Cafaro

the It's of the half number million it in and the No. started in XXXX the principally is fourth. year $X back and

not that's an annualized number. So

Jordan Sadler

Right.

you So curious right? annualized, the are… adjustments rent I'm were, just annualized rents if what So

Bob Probst

Yeah.

Jordan Sadler

adjustments those total to right? million a has of more than a obviously, result it or million be $XX of by Falling $XX as

Bob Probst

Yeah. $X And you Correct. can million. annualize

Jordan Sadler

fine. That's just Okay.

did then guidance lease guys other end called out. in on same? or that the sheet. sheet then, I noticed And see the to the that the guidance. holiday was Okay. previously and were And maintained Okay. Bob? that at you you the look Is thinking contemplated no thing guidance there just still in that I didn't changes then had about times, in balance X.X balance the since the how lastly, forward, should quarter be quarter ATM Leverage the to we all going that

Bob Probst

Yes.

that close very we've or within So much as much X.X really operated long within time. LGM so the a very of five of range the of six a the quarter anticipated, in function

not we that a But uses, ATM So, quarter. where did do the with Simply, had, the last described that's we earnings do We we’re – little that. but so early quarter, on rationale. we're we the have didn't call, quite there. comfortable any comfortable did very incrementally are. third we we're We in didn't after in

Operator

Instructions] of Thank Our Evercore next you. from [Operator question ISI. Steve Sakwa is

open. Your line is

Steve Sakwa

what maybe trending on maybe in and to maybe switch how of and moving the wanted SHOP the sort Thanks, Debbie and portfolio you a I that experiencing sort just see kind consistent as you're Bob. expenses of of or to forward. positive just front negative labor

Bob Probst

Steve. Yes,

indirect year below asset is and, consistently growth we've consistently managing the portfolio. operating described pressure, So, talk how to that the X.X%. kind we’ve is by that procurement to look model pretty overall number OpEx a you date and clearly per-hour in about a been costs underlying thing year-on-year when the about and and across wage X%, at I'm range a keeping to to digit we've manage seen – What We staffing consequence, OpEx. sort level, the of continues by happy grew basis, able as nice mid-single that at of third talk what

is continues and in mid-single in base that had. to operators lots the range the managing fantastic we've of doing inflation. been on – I that credit pressure Now, we’ll clearly, a playbook run the and keeping as if give to range, same if below in that if continue the digits OpEx and need wages our labor job economy OpEx the the it's to keep But

Steve Sakwa

the Okay. Debbie. And R&I second business, the question guess I on

just of three As mean, you the ago? how would out, today, months six I to look it of describe of sort you sort set opportunity versus sort

Debra Cafaro

turn that Officer. our Chief John over to my on Cobb, to ground, Investment who’s going colleague the I'm

John Cobb

at I pipeline of competitive, both We're of a the friends our fair we're activity and we're definitely activity. university become development more think, I our side at in what of we're little markets. seeing mean, a a on John. amount seeing still looking Wexford. – and with is good lots core amount our This bit acquisitions seeing seeing so We're is in is still forth but also Those markets are fair there.

Debra Cafaro

a competitive maximize have doing research humanly team, everything advantage possible competitive We innovation great John university and to position business, we have. that the the are and in and that

Steve Sakwa

to quickly on nature, new on into trying follow pricing color get the front, up competitive assets? like I acquisition or sounds to players is guess and just to just it the happening coming little those what's the a more maybe on on business

Debra Cafaro

science, become it's funds. now I mean, mean, life competitors. private bit would more bit competitive, in it's always right But the price been all compression. to a new There’s have equity it's It play in. a in some I some industries little competitors I happens there’s than, [ph] a little different formed just more last in that that six there’s just say, been months. no always we been the couple be

Operator

from you. Bank question Joshua Thank our And next of of America Dennerlein comes Merrill Lynch.

open. Your line is

Joshua Dennerlein

guys. morning, Good

Debra Cafaro

Good morning.

Joshua Dennerlein

and maybe what's was have XXX that would basis color be mentioned – you if Can them if for weaker maybe Did the on In and you the their there on I expected add point. heard that’s just if maybe that, about ESL statements you markets give removed correctly? some or you on opening more going can it than or…?

Debra Cafaro

Yeah.

result occupancy drove of result basis unique couple I talked in We Thematically, be what discrete terms that than are different from XXX to about in One of ESL ESL. secondary, point overall tertiary footprint, pricing. this more call impact out right. the not is what say case. or you're a the is markets. I’d and did So, tends QX to things which the

in these And I the the midst of, the them of of in two including a and new models is assets the ESL it same. made thematically, had generally tougher implementing in for in has say pricing drivers tough taken particular. the still even process would But it as new are market, context the which ESL model, over

Joshua Dennerlein

in the Just XX:XX:XX like SHOP and the might maintain to going Okay. were expect are forward. of got should with shed if maybe we of to get [ph] And the net drivers senior X% on trying to XXXX And portfolio? coverage ratio evolution this or the closer kind quarter lease that what a consistent was trend impacting housing going sense that out X.X%? where might XQ

Debra Cafaro

of say or business model irregardless irrespective industry would I Well, is industry. the the of

to impact that are at that So, similar as extent coverage. the a on assets market cash seeing flow triple-net the yes, and operators the a profile, same the would conditions have then,

As what yet results market operators early you our drives terms know, so in clearly, we the haven't for of we report triple-net, on from got the basis But ultimately all is to underlying number. too coverage, a say. delayed and that

Joshua Dennerlein

would kind like conversations in are you range of time where action? would Okay. be that taking a or consist over what like And comfort point the consider they feel leases you those kind of you're as at still could confident

Debra Cafaro

compressed. if X.X% X.X% Over period normal again, I want is long we if how market, becomes looking what may determine on. are, really EBITDA the so a those And would they're range, leases, time, X.X% it's Well, coverage really have you you what more coverage of depends you're would to and depending maybe are. pooled in it – X.X%, see say you the address would you on credit to what credit to the those how is, where the over a at in other different time, approach whether which things whether situation circumstances supports

at in pool and comfortable largest I We've the operators, pool of senior addressed to and of this talked quite XXXX, we're with. of street percentage those about the we've housing very effectively, think how triple-net

Operator

question you. And from Markets. comes BMO next Kim our Capital of John Thank

line open. is Your

John Kim

the or lack the next transitions operating any Thank you. -- contemplate does Question of major of growth enterprise Debbie. that you're… now this hi, on company any this amount significant contemplate disposition Does year, shrinking

Debra Cafaro

state. steady fairly Look… It's a

John Kim

relief triple-net you think I'm million of question it also of under lack instance growth. you guidance? coverage for went that that but on that to looks earlier I asked get notch. that's going down LTAC earnings mean to year another to your significant was wondering difficult this $XX there be a seems the still had Okay, like the the and some if part is had, this rent I

Debra Cafaro

I'll no rent both touch there's on the in the made a that literally literally driven points LTAC, matter so LTACs. and basis fundamental the the but when around, asset change the by LTAC round it's performance, of in was change

John Kim

can point significant a Okay, It SHOP significant, pretty performance like parameters is up they the and still basis XXX portfolio any verify follow SHOP, ESL. second SHOP your part seems size the [ph] on of just -- how given are of on you just is on how was? impact the question as your the same-store

Debra Cafaro

impact. a little is say number, basis less XX% SHOP XXX what is they a big on roughly you the portfolio as Yeah, of represent. a bit points Clearly

by just year-over-year definition math. And down. is double that performance so digits It's the

lower quite material operating margins secondary consequence lower But the as models, business outpour as and type a quite more tertiary of quite notable. again, comes highlight So dollars, so and quite to bit well. would leverage a back I materially and – in same drivers. it again, slightly

Operator

you. Instructions] Valiquette Thank comes question Our from [Operator next Steve of Barclays.

open. is line Your

Steve Valiquette

Hello.

dynamics. pricing that So particular aggressive different was new pricing maybe across with spread few wide bunch And curious it more guess or of supply? one operators housing triggers just senior a whether or two companies on some in more whole here questions the more I'm a I of

or to it? did be tried how well pot irrational it pricing to consider the supply you gone to new the – has pricing much, characterize or markets in competition Thanks. to more but also, just primarily acceleration would pricing stir build confirm, more was in new aggressive from And not the too occupancy? they various from levels just where the finally, would see And you irrational as existing aggressive situations any you became to

Bob Probst

I Well, – two that to of there's driving not first the think example, – point say bad for market. actors won't I or any all, one there are

have building investment aggressive I to is amount in community. again, a of when rational the relatively be significant it's to to new of relative there's you openings, opening course a the cost building which fill quite the on price of the cumulative building and small up think new opening which

that's spreads insight. that's price talked irrational. to single-digit seen or We've not in mid And drives new a range has releasing kind So, accelerated. not lower widening That competition. high that certainly declines. of the And

taking impact what I So, of seen up, think it one last of amping amping again we've cumulative and I'd factor, just years. And but happened say it the any not because over up. what's the

Steve Valiquette

Okay. color. All right. the Thanks. appreciate I extra

Operator

And Nick Joseph question our Thank from of next Citi. comes you.

Your line is open.

Michael Bilerman

Debra the by was mentioned year change, deferral on a Hey, I steady which about growth time perspective a as it's Mike spent next lot wondering just, the largely talking FFO of of an an we call. talked XXXX Billman with XX:XX:XX Nick. the SHOP you from was you about again driven state and here enterprise, the from

One billion of back that investment Day volumes. volumes. things next year, when was net wanted the does just net investment about of growth still in Investor $X And you're of you for billion walking I having to the understand, assume the $X then talked

Debra Cafaro

you as and guidance feel strongly and couldn’t XXXX responsible am Yeah. components and I Again, – do the about so you to that that at giving ready in of or is reliable. Michael looking I more imagine. thereof, expectations of terms I very all when to feel can

steady enterprise if simply now, the that of want deferral state, terms have said growth, you to about In we I think what I when would it's of that. say

Michael Bilerman

this question weaker. you Well, together, and is have back, and piece walk I'm much just is maybe trying to bigger that situation an unfortunate SHOP is the to

Debra Cafaro

Yes.

Michael Bilerman

XXXX. …than an something sort I managers, last can had that for have year other you you numbers or where the you and discipline to have guidance so fire down and internal come of manage at bad to if not oversight. unfortunately someone for trajectory, a pretty someone expect, FFO issue just even But it's significantly performance the or look you

profile was growth say really you You had where an did future I reverse Investor people excited the about would the get Day which company. of the

weaker, conference bit significant talking in September, little then XQ today a change XXXX. went a at were weaker call, on little bit a and result a started the down numbers things further and for dropped same You

level And not to numbers of onetime so be can action, the event. I but is get the this respect wanting and responsible in a all

to like an are would really perspective, I doing. understand enterprise what you so else from And

about months from more side? doing what and fixing that taught perspective, dispositions maybe XX your last has so the and from but talked guidance more you own You things financial or capital,

Debra Cafaro

long be And that lessons we be time are be It's stage amazing we've to Yes. be periods values always say again, would good still this learning reliable and known of over hold grade and to forthright. those been dear. at and I to

if market earlier the we would have that a I for is dynamic to be one asking or even to of more more are say be all like information have people have disciplined what in certainly disciplined that detailed now, we the confidence to you. we inputs lessons have have we that information, make to believe we necessary we sure are in are telling

forward lesson we how – – by to characterize and that's to that and And a responsibility – learned. going have stakeholders, differently feel is and have deep and what would I what our really you to I we we've reinforced And today. will shareholders our we we do of all and

Bob Probst

that we you on give grow is trajectory hold isolate to SHOP we not when January to year. SHOP expect to And going to confidence think likely off the going had able FFO then be based for sort tell we're of today to all we'll – market I some in what the and of until the second experienced we're key we're point that And the please the element trying in our next half details. XXXX you've of all

other in of some think does least for at no you together coming put I pieces trying that's $X the coming growth to investment, year, that of to of think and comment puzzle we're next the where the declaration mean? to the pieces to like I making that what billion understand

profile? the were Does it's we're just to your I And mean what's that and apples some into trying guidance I so your embedded do generally acquisitions growth by what's historically which way and speaking you are the of Investor – versus that used that Day in should and zero to there is meaning growth layered what's all not. understand like think oranges, assume the and you that, in think way you

Debra Cafaro

can – the amount back growth And there that that do to at And driven of come a with Right. rest will is right We we the obviously housing. our you respect it, by that say to the underpinnings range… senior what be more of some we significant a you and want is deferred. time of to is give

Michael Bilerman

just… then And

Debra Cafaro

go that that range. into …and what’s the component, sorry,

Michael Bilerman

Right.

obviously, And that And you so about all – components. steady I be next that just net I other does include investment want – because comment activity to would make to forget could – that your growth so comment said for the is getting in about numbers. that the year, when your state, not to exclude want growth, about sure accretive

earnings $X.XX $X.XX to to from get $X me buying financed you're of to if anywhere one That a is it major accretively. could billion assets because

So just like that understand. – a sure one make to we major seems because to that me

Debra Cafaro

effectively and I terms Michael, said, mean I organic just correctly markets without dispositions, additional etcetera. acquisitions, about capital we're state, of we’re thinking steady – in as you've interpreted

Michael Bilerman

year. could off work From and going find your with a potentially that investments. to that to to portfolio, same point, would improve all store, you’re accretive outlook. SHOP on ass earnings down So, basis, additive work be that state to current your whatever But to next lead steady being managers, operation FFO current

a that could could a better Is out there hope so be And turn assumption? that chance, things expectation. a than fair that

Debra Cafaro

to XXXX get are is the focused we as and external delivering whole improve on. certainly acquisitions we performance the foremost of here. Well, benefits we've senior first outlined on upside, team to the hard as committed possible and housing will so absolutely And to working and

have You for commitment that. our

Operator

Bank. Johnston next our And you. Derek question Thank from comes Deutsche of

open. is line Your

Derek Johnston

Hi.

underperforming a a as I if I to we've how some disposition for what reducing investments, do second. you and look R&I – or balance hospital assets and optimize speak this. are housing dependence through But the could So, lot you So forward, SHOP missed the if of to you senior maybe that growth on apologize versus possible options covered portfolio? and

Debra Cafaro

and positive. there the balance Right. I upside to continue to We because very senior performance. definite portfolio is a mean in in here indicators optimize There is be improve senior the can certainly housing things a leading housing. do powerful always

to as have enjoy We also be want and there our there shareholders powerful to that be upside materializes. it

as is balance pointed definitely there there So a you’ve out.

Derek Johnston

investments well? as far how expect that possibility as but but continue, Okay, a general? shut growth we R&I in as that [indiscernible] in about Is to

Debra Cafaro

that I mean invest that’s, Ardent’s about very, Bob talked our And good, investment that done assets new well. course to which Montreal performance we'll been has has investment continue very Again, has of in. underway five

So housing. there the that while aspects are continue enterprise to of are also going we can those in obviously where the well. we many in senior good very address And on strengths build are portfolio we

Operator

Lukas Thank of question you. next Advisors. comes And Green Street Hartwich our from

line open. Your is

Lukas Hartwich

why such any there you On performance? data NIC large disconnect the a have Hi. ideas SHOP, is with do

Debra Cafaro

NIC rate, it's you that from disregard rack on really not is rate side, it. one basically. We the effective REVPOR. the on rate, Well, would rate the It's tell not I

that I kind that So the be really of should table. off think

is XX basis comparison it sequentially, points, occupancy occupancy of terms the built built difference they we XX, In a year-over-year

Bob Probst

not only the And the of XXX% add that I [indiscernible] is certain would geographies. country coverage to of

I complete. the think So, representative, not

Lukas Hartwich

one capital that senior into and Well, compare the we SHOP in and going steel example you spend can that then your triple-net Great. And contrast know for CapEx just housing portfolios? the other, for amount is triple-net by in yielding their with significant we've a in to agreement keep well. And portfolio our some the as CapEx. through assets investments is in investing markets doing them, competitive committed

for I is it, tend leases CapEx in shop which $X,XXX rate requirements have a to spend. and spend, our call we end Most portfolio, by unit. triple-net do the would higher higher large, and say of general,

to for significant and point in keep with good very high the condition price So, resident. a the assets

Operator

from our And question comes [indiscernible] next Stifel. you. Thank

Your line open. is

Unidentified Conference Call Participant

get of quarter SHOP from really dramatic end supply there because occupancy a just So, more to little account in a doesn't only the be mid-core to I'm detail seems to and seem the the to that about going new try occupancy shift for. no

us specific and So, operators something to a without little geography can confined property watered? more is give or or you detail

Bob Probst

Yeah.

a it So, at in all significant most September. least across true a trend and have notably significant the quarter operators was in in our within it my is the even that portfolio. experience, pretty SHOP was change that And and unprecedented. we And which is it’s

tertiary is So, online see has to we But secondary acute most earlier, it's I not saw, impact. more specific even where you supply come where again, see in either. the similar primary mentioned trends. markets We geography a and markets,

So, kind that's time to why different will of consistency a in back But it in cumulative Is at that as Chad a Only in tell. I its keep ways. capitulation coming or this some is it notion effect. look [ph] it not? of we notable

Unidentified Conference Call Participant

in Then XXXX, All is if how does Ventas’ it expectation of senior housing in spread, XXXX? how potential this has alter weaker wider your view acquisitions right. a SHOP of

Debra Cafaro

Well, of again today. as in we in that talked we've about as any that it relates to the had XXXX, we're not conversation factoring

vast, quite in non-US investment growing our we've investment. example and investments. based vast of been several past been the The judicious senior for majority housing LGM pipeline Montreal has obviously years, Over about our vast, the activity R&I

about would about a couple is I years. on We by really based housing the investments our the business we've case on past remain in over positive so the fundamental housing judicious business. But the of investments growth expectation say basis. And our case long-term been in very senior senior

Unidentified Conference Call Participant

All right.

the think the or in looks like three So down portfolio line do years? optimal two you what mix

Debra Cafaro

between continue research excellent over where We've that I business our SHOP we always should Well been to in certainly, somewhere and we that's and hope XX% have consistent to US expect we've building the before, risk that and this time. about returns. innovation adjusted be talked and say thought XX% would university-based

which all manifestations I from now from continue in as diversification is And seen again has really would endorse benefiting outperformance company to office. the its right the you've

so Some lease healthcare triple-net business and on. of the

Unidentified Conference Call Participant

right, Thanks. I'll All leave it there.

Operator

next you. JPMorgan. comes And Michael our Thank Mueller question from of

open. Your line is

Michael Mueller

and the we This shrink markets market the the going isn’t ramp over ramp markets asset over the sales? variance going a assume between primary performance wide secondary to the You're secondary time that XXXX to you're and question, given time markets, up secondary should and shrink but

Debra Cafaro

want also I upside. being that effectively market and in think we're while we secondary to of as outgrowth market this Bob said, powerful that that's in make the an decisions compete on felt, sure is pricing so if now earlier development taking to preserving action, operational

And and so on those may assets look both be will basis a all operationally case a by the first on markets two change and to positive note, at of case all we and those strategically. those

So think how really conclusion thinking we're don't I it. about your directionally is

Michael Mueller

you And Okay. Got they've that just negative terms the can it. of some how rent then spread, numbers put trended? around in

Debra Cafaro

question. a That’s Bob

Bob Probst

X% This in the to it call would year, XX% I year, Last down. Yeah. Sure. range. closer

Michael Mueller

Got it.

Okay. That’s it. Thank you.

Debra Cafaro

right, Mike. Thanks. All

Operator

Thank And Bernstein our Daniel One. comes question from of Capital next you.

open. is line Your

Daniel Bernstein

I'll The sun morning. still good upside. is shining say still

Debra Cafaro

morning. Good

Daniel Bernstein

on I rate asset guess in based not the to the way you’re up understand of and emanating debt morning. is industry where out the – of out the builders your and it is some and that Is XXXX, pressure or trying the [ph] early pressure merchant supply Good of question in construction there. kind there. stabilized, Is some pressures from again, the online stemming is I I'm you’re broad within your years Well, merchant the how three a probably from the operator? – you’re have against builder coming it that came where owner new covenants.

Debra Cafaro

Yeah.

all anyone, as with specific as specific least to above, or owner. of again operator it's geography conversation. It's we think honest more an the at It's I to and anything anyone, not industry you. see than be commentary

Daniel Bernstein

Okay. side everywhere? And than the this AL or then, I the is again more assume of on it's side IL kind

Debra Cafaro

starts Yes. distinction has the gotten is... And yeah, which AL. the It's come. that's definitely where supply where That the absolutely. foreign have -- Again, lowest

Chris Cummings

latest low, notable and most improvement, the the nine the years to nine lowest think, Right. I data years. And

And so, AL that's IL seeing the is performing the pretty well, actually. It's pressure.

Daniel Bernstein

Okay.

want inclined – like nothing that, – not that does to broad anything down given to more to buy ancient would or or it invest how we're want get does where versus has or to living – housing. a you assisted in but just XXXX maybe so, and guidance perspective, would And triple-net of the leave then of that, going where are and to you something a and to more continue say continue starts invest build kind the acquisitions exposure in path seniors you would from again

Chris Cummings

our As long-term in we've investment about senior the strategy, of are on positive fundamental outlook for terms we housing. talked

past our what invested case we'll innovation judiciously risk on – We're years. priority, case and to adjusted look research with have and basis continue a one business is building few as number We universities is our return. over we at investments good good which the we see believe by

Daniel Bernstein

as getting we’ll guess the line it’s I okay, conversion off late. Okay, continue

Chris Cummings

it. forward, I look I forward look to

Debra Cafaro

participation call. everyone wanted I and patience So for their thank in to this

aligned As can working as as and behalf of are Michael shareholders appreciate our eloquently are and committed continued support always as we said, we really And on we to trust. we your hard have.

So we you. in look Thank to seeing November. forward you

Operator

concludes Thank gentlemen, this disconnect. for today's and now Ladies participation conference. and you your you may

Ventas (VTR) 25 Oct 192019 Q3 Earnings call transcript